Striking the Right chord with business.

It goes without saying that uncertainty goes hand in hand with business. In order to lessen the impact of uncertainty on business, organizations come up with innovative practices to bring various departments under one roof. In simple words, ERP or Enterprise Resource Planning is a powerful tool which integrates all departments and functions across a company onto a single computer system which can serve all those different department’s particular needs. ERP packages were initially targeted at the manufacturing industry and eventually made its way into other industries due to the tremendous success rate. As a result the management information, both internal and external was integrated across the entire organization and ties with outside stakeholders were maintained on a common platform. Read on for more info on how ERP can help in execution of your marketing ideas & tips.

An integrated system operating in a real time environment and a data base supporting all applications are the main components of ERP system. Before implementing an ERP system that conforms to ISO 9001 in any organization, an extensive search must be done to spot the perfect package which fulfills the needs of the company. Few products must be selected after performing screening by involving opinions from vendors and consultants etc. Once packages are selected after screening a complete evaluation process must be followed. This is a crucial phase since the selection of packages could make or break the company since a huge investment is behind it. Company’s objective must be to find a user friendly, flexible package which meets company’s needs. Project planning follows once the package is selected. Roles and responsibilities, Time schedules and deadlines are assigned.

Implementation phase decides when to begin, how to implement and when it must be completed. GAP analysis is a phase where an overview of the present situation and decisions on future plans are arrived upon. This analysis helps the company cover up any loopholes. Human factors are considered in Reengineering. Employees are trained to run the system and later implement it. Testing identifies the weakest link. The old system is removed and the new ERP system is implemented. If problems crop up, there must be enough employees to handle the situation. The system must be updated with changes in technology.

The implementation of ERP results in improved customer service, low production and distribution costs, improved planning, integration of production with sales and distribution, and lower inventory investments. More customers will flow in and loyalty will prevail among the existing ones. Better utilization of the existing resources will lower the production cost. Inventory cycles can be managed in a better manner. Smarter and more efficient ways of distribution can be followed. ERP also helps when a company is facing Insolvency .

The functional areas of ERP concentrate not only on the core business departments but on Access control, Data services, Invoicing, Filing, Scheduling and Data. ERP has managed to bring drastic changes in the way Supply Chains functioned. It has made way for the use of Internet based communication between Customers, Suppliers and other partners in the supply chain. You can ensure effective ERP implementation by first getting adequate training on ERP. You can do this with the use of online small business coaching resources such as Custom Banners.

When it comes to choosing suitable ERP there exist a problem of plenty in the market since the scene is dominated by Free and Open Source ERP Software and proprietary software. Major ERP vendors are SAP, Oracle applications, Microsoft dynamics and the Sage Group. It is time to make your business more efficient!